After analyzing three years of a company's financial statements, you note the following: Sales (000s...
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Accounting
After analyzing three years of a company's financial statements, you note the following: Sales (000s omitted) Accounts Receivable days on hand Inventory days on hand Accounts Payable days on hand 20Y1 2OY2 20Y3 $ 7,200 $7,600 $8,200 34 37 49 53 32 32 36 38 Which of the following is the most relevant question to ask the company's management? Why aren't your account-receivable days on hand growing at the same pace as your sales? Why are your inventory days on hand longer than your account-receivable days on hand? How much of your accounts receivable have you written off in each of the last 3 years? Explain the sudden drop in accounts payable days on hand
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